Chapter 10:

Logistics and Supply Chain

Information Systems
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Logistics and Supply Chain Information Systems:
Introduction
Many firms view effective management of
logistics and supply chain activities as:
Prerequisites to overall cost efficiency, and
Keys to ensuring their ability to competitively
price their products and services.
Effective information management also can help
ensure that a firm meets the logistics needs of its
customers.
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Contemporary Issues in Information Systems
Quality of Information: Three major issues
1. Availability of Information
Managers do not always have the info they need &
may be uncertain of needs.
Supplied data not consistent with needs.
2. Accuracy of Information
Wrong product-cost information & produce the
information that do not help managers make the best
decision.
3. Effectiveness of Communication
Ineffective communication of info or people ignore
unexpected info (selective perception).

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The Shift of Logistics Operations in the Connected
Economy
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Figure 12-5 Technology Impacts on Supply
Chain Disintermediation
(a) Simplified Supply Chain
(b) Supply Chain with Disintermediation
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Contemporary Logistics Information
Technologies
BAR CODING
Standard markings that can be read by automatic
or handheld scanners that allow for labor saving
logistical activities for all supply chain members.
Bar Codes contain information regarding:
Vendor
Product type
Place of manufacture
Product price
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Contemporary Logistics Information
Technologies
Electronic Data Interchange (EDI)
B2B, computer-to-computer exchange of business
data in a structured, machine-processable format.
Artificial intelligence/expert systems
Attempt to transfer human intelligence to a
machine. Replicate best practices of humans
to a computer-based system.
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Contemporary Logistics Information
Technologies
Extensible Markup Language (XML)
Method of packing info.
n
for movement on the
Internet. May replace EDI in the future.
Data management
Handheld input devices & optical scanning popular in
data management. CD-ROMs are another data
management tool seeing increasing use.
Imaging
Both photographic & facsimile processes
are being used to image documents.
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Contemporary Logistics Information
Technologies
RF technology
Use radio frequency to transmit computer
outputs, from an expert system to human
operated devices, such as, a forklift. Optimizes
quality, efficiency, & accuracy.
Onboard computers and satellite tracking
Uses systems such as GPS to track and
communicate with mobile and/or remote
vehicles.
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Logistics Information Systems
Definition
An interacting structure of people, equipment,
and procedures that together make relevant
information available to the logistics manager
for the purposes of planning, implementation,
and control.

4 major subsystems : Planning, Execution,
Research & intelligence, Report & output
system.
Examine Figure 12-9 on the next slide.
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Figure 12-9
Logistics Information Systems
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Logistics Information Systems
Planning System
Provides decision support for logistics managers
Database that contains the type of information
needed to make effective decisions.
Types of modeling approaches:
Optimization - Searches for best solution
Simulation - Replicates the logistics network
Heuristic - Computational experiments
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Logistics Information Systems
Execution System
Responsible for short-term, day-to-day functioning of
the logistics system.
Include technologies that help manage warehousing,
transportation, international trade, and inventory.

Research and Intelligence System
Environmental scanning: Process of gathering, analyzing, &
dispensing info. for tactical or strategic decision.

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Logistics Information Systems:

Reports and Outputs System
Help managers communicate reports effectively.
Most input comes from the execution system.
Types of reports
Planning reports
Operating reports
Control reports